Trading with Fair Value Gaps

you are emotional and so am I so in trading we need our entry model to be simple yet super effective and this can be achieved through using fair value gaps now the reason we need our entry to be simple is because it&#39;s the most emotional part in our trading and when we get more emotional we are more susceptible the risk is higher that we are about to mess up that we are doing something that we should not be doing so our entry model should guide us through it should be a stepbystep manner but the Simplicity should not come at the cost of the effectiveness it should still be good and still be very effective and that is exactly where the fair value gaps come in as well so there&#39;s four steps that I want to go over where the first step is PD array because we need to understand how we align the time frames then the second step is fair value Gap in third step is fair value Gap out the fourth step is entry VAR variation because we are working with either a back or an fvg and I&#39;ll explain to you later on when we get to the fourth step what I mean with that all right we have arrived right here on bitcoin and I first want to go over Bitcoin and the further we move along in this video the lower we are going to go in time frames meaning eventually we are going to look at sculping and day trading because all of this is fractal and it&#39;s the first thing I need you to understand all of this is fractal and what I mean by that is that we are currently looking at the daily time frame but it&#39;s purely that at the top left it says the D right there and that it actually says that this is the daily time frame because if I were to open this chart and I were to show you this chart then this could very well be the one minute time frame and we would not know because every time frame looks the exact same and every time frame acts in the exact same manner as well so the entry model that we are going to go over is the exact same on every single time frame but it is our job to align those time frames and what I mean by that the further the distance between two time frames the more confirmation you are going to need on your entry pattern time frame so what does that look like well here we have a weekly fair value Gap sitting right there which we can continue higher off of right there targeting eventually these highs right there and potentially even we&#39;re getting close to alltime highs very interesting but now we have the PD rate the first step and now we need to determine which time frame are we actually going to go into to look at our entry pattern and this is where again the further the distance between your PD array time frame and your entry pattern time frame the more confirmation you are going to need so for example if I was to go into the daily time frame right there I don&#39;t need a lot of confirmation I could just need a fair V up higher it&#39;s all I need but if I were to go into to the one minute I need a lot of confirmation because a single one minute Fair V Gap coming off of the weekly F VAB right there is simply not enough it&#39;s not strong enough it doesn&#39;t show the actual attention of what price wants to do right there so if we do dive into the daily time frame right here then what we see is the second step and the Second Step was a fair value Gap in so this might seem scary at first because whenever we talk about rate that we might continue higher from and we talk about our entry pattern then I always mention I would want to see a fair value Gap coming into my PD that&#39;s the first part of my actual entry pattern because that shows manipulation a lot of people right there get tricked into thinking it is going lower and when they get tricked into thinking it is going lower opposite liquidity can enter the market right there in the form of buys where Banks big institution Etc as crypto likes to refer to Wills can enter a trade because they are met with opposing liquidity in the form of sellers because every seller needs to have a buyer and every buyer needs to have a seller so the second step after the PDR is fair value Gap in a fair value Gap in right there is again the first part of our entry model then after we have that fair value Gap in it is depending on how that fair value Gap acts which is also quite important now right here we see that on this up candle right there we have a rejection off of that fair value Gap right there the next candle is a down candle sitting right there which tries to follow through lower but it fails to do so indicating that this fair value Gap was not strong enough to create a new fair value Gap lower perfect after that what we need is the third step a fair value Gap out and what I mean by that is fair value Gap into the PD and fair value Gap out of the PD this creates as we know it a sharp turn where once this da V right there has been confirmed so the third candle right there closes this is a confirmed for VAP this is a confirmed sharp turn now this is quite simple to understand I imagine and recently when Bitcoin was actually around here I tweeted this the following and I mentioned on bitcoin right there that you would not want to enter on that fair valab right there and this is where the fourth step comes in this is where the entry variation comes in where we need to understand if this fair value Gap right there that is coming out of the PDR so the third step the fair value Gap out is that a breakaway Gap so a back or is that an fvg a fair value Gap and if we want to understand a breakaway Gap then there&#39;s two ways of knowing if it is a breakaway Gap and the first one I&#39;m going to show you right here if we look at the discount arrays that are currently in price action right there then the first discount array that we actually encounter so the first support area that we see is this breaker right there that&#39;s a breaker block and that breaker block right there is higher than the fair value Gap itself and when we have a discount array right there Above This fi Gap that discount array could withhold hold price from Trading into the fair value Gap meaning that there&#39;s potentially a breakaway Gap and when there is potentially a breakaway Gap we do not want to enter on it we want to be certain that it isn&#39;t a breakaway Gap because otherwise we might be waiting all this time and then we miss the entry because we simply did not get involved that&#39;s going to hurt and that&#39;s going to cost us money so the first way of knowing if it is a breakaway Gap right there is by knowing knowing if there is a discount array above the fair value Gap that you are about to enter on if there is then your entry is on that first discount array and not on the fair value Gap you do not necessarily need to cover the swing lows you can cover the bodies right there targeting a one to two and this is the exact example right there that I had in my tweet because that breaker might be responsible for the fap not being traded into and that might be is enough for us to enter off the breaker instead of the F Gap I would rather want to be a part of the move right there instead of missing it and waiting another decade before we have a new trade of course that&#39;s me overexaggerating but that&#39;s my thought process I just want to be a part of the move this is the first entry model that we have sitting right there and this is the first variation of an entry model as well all right we have arrived at example two right here US dollar JPY and the first that here is of course also PD array now the first step is the only thing where you need to think what do you want to do right there how do you want to align those time frames again general rule thumb is that if you have a monthly PD you want to focus on either a 4 hour or daily entry pattern if you have a weekly PD it&#39;s going to be the 1 hour or the 4 Hour daily going to be the 15 minute or the 1 hour the 4 Hour is going to be the 5 minute or the 15 minute 1 hour is going to be the 1 minute or the 5 minute 15 minutes is going to be the one minute ideally and if you want to you can also use the 5 minute but the 1 minute is enough I&#39;m giving you two options right there because if we for example use a monthly PD array and we can go either into the 4 Hour or daily we need to understand the 4 Hour is the minimum where the 4 Hour the lower one that I suggest is where you need more confirmation the higher you go above the 4 Hour the less confirmation you need and the example we had on bitcoin was weekly to daily the higher you go is perfectly fine so if you want to use a 1 hour PD and a 15 minute forag up higher only that&#39;s perfectly fine because the smaller the difference between those time frames the stronger the confirmation is going to be where off of a weekly pdate a daily entry a daily for V up higher is extremely strong like we saw on bitcoin but don&#39;t go lower than the lower time frame i s digested so for the monthly is the 4 Hour weekly 1 hour daily 50 minute 4 Hour 5 minute 1 Hour 1 minute because then it becomes extremely dangerous because that confirmation is going to be quite difficult so here in the 1 hour we see we are almost reaching these highs right there which we can of course reach by coming into this one hour V right there to continue higher off of that here we choose 1 minute or the 5 minute which one do you want to enter off of with the minimum being the one minute again for this example I&#39;m going to go into the 5 minutes now on the five minute we are seeing again a fair value Gap in right there which is the second step fair value Gap in absolutely perfect beautiful fair value Gap into the PD Ray after that we see again a fair value Gap out right there this Fair Val Gap right here not following through like we&#39;re seeing not creating a new Val Gap lower right there of course is a nice extra detail because that actually shows us that this bearish Val Gap was too weak to follow through right there and then after creating a bullish Val Gap indicates that the bullishness the bullish intention is taking over the bullish side is stronger so step one two and three are complete this is again where the variation the entry variation step four comes in this is where it&#39;s completely mechanical again but you do need to be aware of what you are doing which rule are you applying the question for step number four is is the fair value Gap out in the third step a breakaway Gap or an FG the first question we ask ourselves if it is a breakaway Gap is there a discount array that is higher than this fair value Gap right there no actually not because the breaker sitting right there is below the fair value gap or halfway through the F Val Gap so the fair value Gap the opening of this F Val Gap is higher than the breaker we have right there perfect that might indicate that this is a fair value Gap then the second step we need to go over is understanding if the third candle right here that actually confirms the fair value Gap closes above the second candle&#39;s High meaning this high right there and I&#39;ll show you the example of a breakaway Gap right there in the next one on Australian dollar CHF but here this does not CL close above this second candle High meaning that this is not a breakaway Gap based on the two questions that we had is there a discount rate Above This fi Gap does the third candle close above the second candle high right there of course in a bearish situation it would be does the third candle close below the second candle low for example this one right here this is a breakaway Gap why because this right here the third candle closes below the second candle low so when we go over those two questions and we come to the conclusion that it is not a breakaway Gap then it means it is an f a fair value Gap in that case you want to enter off of the fair value Gap right there covering again the lows you can cover the bodies you can also cover the swing lows right there targeting one two two and the most important part of course understanding that we can enter right there off of the fair value Gap itself because since it is not a breakaway Gap we do expect a retracement back into it all right here we are on the third example Australian dollar CHF and showing you the last variation possible but before we dive into that third and the last variation we need to understand again the PD Ray the discount rate that 4our for Val Gap right there targeting eventually those highs then we have the choice we can go into the 15 minute or the 5 minute for this particular example I want to go into the five minute to show you the third variation all right on the five minute we see again the volatility the momentum the intention going into the discount array once we then are close to the discount array this Fair valap already shows that intention shows the manipulation it becomes even better because we see right there that we do not create a new 5 minutes forap lower off this previous 5 minutes forap app absolutely perfect that shows that again like on US dollar JY shows that there&#39;s more bullish intention currently in the market so when we then create a bullish fair value Gap right there that is exactly what we would want to see but this bullish fair valap right there the third step the fair valap out is not enough because now we have aligned the time frames differently and to be honest this is my preferred entry variation right here I always like to get the double confirmation instead of the sharp turn we talked about earlier on bitcoin and on US dollar JPY and the reason for that so if you&#39;ve made it to the last example then you&#39;re getting golden nuggets because the reason for that is when we actually retrace into a discount array right there that is exactly what you would want to see so the first for higher right there you would want to see a retracement a retracement into any discount array that creates a new fair value Gap higher right here that is exactly what you would want to see the reason for that is because this now shows that there was a discount array holding meaning that all this time right here we have been bearish well perfectly bearish no but we have bearish right there which means that premium arrays were most likely holding the premium arrays were in charge of the market they were in control so to show that that control was actually shifting we can only see that by discount arrays now holding and creating that first survi Gap retracing into a discount array creating a new for up higher that shows that discount arrays are now holding which means that is the perfect confirmation that you actually can take an entry right there and this is exactly how you want to go over the entry pattern as well if you go for the lower time frame so for example the 1 hour with the 1 minute then you would want to see something similar to this where I mentioned two F gaps higher the first F Gap ideally retracement into disc and then a new F Gap higher off of that in the fourth step we ask ourselves again is this right there then the Breakaway Gap is that a breakaway Gap so we&#39;re not talking about the first fair value Gap out right there we&#39;re talking about this fair value Gap right there after is that a breakaway Gap well is there a discount array Above This fair value Gap sitting right there no because there&#39;s nothing overlapping right there with the V meaning yes you do have those wigs but these Wicks are not valid because they are not overlapping with a fair value Gap so you have this order block right here and even this order block but that is below the fair value Gap all right so that&#39;s the first indication that that might actually be an F but we need to go over the second question and the second question is when we created that F valap right there that we are looking to enter off of do we close above above the second candle High yes we do indicating that that might be a breakaway Gap so what do we do in this situation how do we enter this when that third candle closes above the second candle high this is where you use the last variation which is not entering on the discount rate that was there above the F Gap not entering of the FG itself but you enter off the creation of the fair value Gap itself meaning this fair value Gap gets created once this third candle closes right there that is exactly your entry this is a technique that I like to use a lot because here price might never retrace into those Breakaway gaps right there might never retrace into any discount array and might just take off so if we&#39;ve been waiting for all that time to come into that discount array to then show the entry pattern I do not want to miss that move I want to be a part of that I want to make some money right there targeting the 1 to2 absolutely perfect this is the last variation for that fourth step again for that fourth step we have three different variations you either in the Breakaway Gap it&#39;s a breakaway Gap because there&#39;s a discount rate above the fair value Gap like we saw with Bitcoin and when that is the case you enter on the discount rate that is above the fair value Gap right there but let&#39;s say that is isn&#39;t the case and we do have a third candle closing above the second candle High then we enter off the creation of the F Val Gap like we&#39;re seeing here on Australian dollar CHF but if it isn&#39;t a breakaway Gap right there and there is no discount array above the fair value Gap and the third candle right there does not close above the second candle High then like US dollar JPY we enter off of the fair value Gap itself and the entry can actually be in the fair value Gap itself right there so from step one to the last step step four there is a stepbystep manner there&#39;s a mechanical guide right there in order for me to get to my entry model with the guide right there making it simple of course it&#39;s something you need to get used to don&#39;t worry about that you can get used to this give it some time to get used to it as well and of course there&#39;s also cases where for example here on US dollar JPY when we do not close above that second candle High we do not trade into the fvi Gap and of course this could also happen where we do have a discount rate above the FV Gap or what we establish to be a breakaway Gap right there and we do trade back into a breakaway Gap to then continue higher again that&#39;s not the point that is going to happen this is not a 100% nothing in trading is 100% guaranteed but it&#39;s all about probabilities and what we have done here is we have outlined the highest probability thing for you to actually capitalize on it no matter no matter what happens right there the highest probability thing for this to happen is that it doesn&#39;t trade back into that for Val Gap it&#39;s all about probabilities that&#39;s very important to remember all right so if you do want my help to fully understand this and see if you actually fully understood it as well then feel free to send your case studies to my Twitter Aro iio it&#39;s by the way the only Twitter that I have so please don&#39;t get scammed by any weird accounts feel free to send me your case study right there just post it publicly give me a tag right there and I can go over it as well or on Instagram of course through stories for example and then I&#39;ll see you at the next one all right perfect thank you

you are emotional and so am I so in trading we need our entry model to be simple yet super effective and this can be achieved through using fair value gaps now the reason we need our entry to be simple is because it&amp;#39;s the most emotional part in our trading and when we get more emotional we are more susceptible the risk is higher that we are about to mess up that we are doing something that we should not be doing so our entry model should guide us through it should be a stepbystep manner but the Simplicity should not come at the cost of the effectiveness it should still be good and still be very effective and that is exactly where the fair value gaps come in as well so there&amp;#39;s four steps that I want to go over where the first step is PD array because we need to understand how we align the time frames then the second step is fair value Gap in third step is fair value Gap out the fourth step is entry VAR variation because we are working with either a back or an fvg and I&amp;#39;ll explain to you later on when we get to the fourth step what I mean with that all right we have arrived right here on bitcoin and I first want to go over Bitcoin and the further we move along in this video the lower we are going to go in time frames meaning eventually we are going to look at sculping and day trading because all of this is fractal and it&amp;#39;s the first thing I need you to understand all of this is fractal and what I mean by that is that we are currently looking at the daily time frame but it&amp;#39;s purely that at the top left it says the D right there and that it actually says that this is the daily time frame because if I were to open this chart and I were to show you this chart then this could very well be the one minute time frame and we would not know because every time frame looks the exact same and every time frame acts in the exact same manner as well so the entry model that we are going to go over is the exact same on every single time frame but it is our job to align those time frames and what I mean by that the further the distance between two time frames the more confirmation you are going to need on your entry pattern time frame so what does that look like well here we have a weekly fair value Gap sitting right there which we can continue higher off of right there targeting eventually these highs right there and potentially even we&amp;#39;re getting close to alltime highs very interesting but now we have the PD rate the first step and now we need to determine which time frame are we actually going to go into to look at our entry pattern and this is where again the further the distance between your PD array time frame and your entry pattern time frame the more confirmation you are going to need so for example if I was to go into the daily time frame right there I don&amp;#39;t need a lot of confirmation I could just need a fair V up higher it&amp;#39;s all I need but if I were to go into to the one minute I need a lot of confirmation because a single one minute Fair V Gap coming off of the weekly F VAB right there is simply not enough it&amp;#39;s not strong enough it doesn&amp;#39;t show the actual attention of what price wants to do right there so if we do dive into the daily time frame right here then what we see is the second step and the Second Step was a fair value Gap in so this might seem scary at first because whenever we talk about rate that we might continue higher from and we talk about our entry pattern then I always mention I would want to see a fair value Gap coming into my PD that&amp;#39;s the first part of my actual entry pattern because that shows manipulation a lot of people right there get tricked into thinking it is going lower and when they get tricked into thinking it is going lower opposite liquidity can enter the market right there in the form of buys where Banks big institution Etc as crypto likes to refer to Wills can enter a trade because they are met with opposing liquidity in the form of sellers because every seller needs to have a buyer and every buyer needs to have a seller so the second step after the PDR is fair value Gap in a fair value Gap in right there is again the first part of our entry model then after we have that fair value Gap in it is depending on how that fair value Gap acts which is also quite important now right here we see that on this up candle right there we have a rejection off of that fair value Gap right there the next candle is a down candle sitting right there which tries to follow through lower but it fails to do so indicating that this fair value Gap was not strong enough to create a new fair value Gap lower perfect after that what we need is the third step a fair value Gap out and what I mean by that is fair value Gap into the PD and fair value Gap out of the PD this creates as we know it a sharp turn where once this da V right there has been confirmed so the third candle right there closes this is a confirmed for VAP this is a confirmed sharp turn now this is quite simple to understand I imagine and recently when Bitcoin was actually around here I tweeted this the following and I mentioned on bitcoin right there that you would not want to enter on that fair valab right there and this is where the fourth step comes in this is where the entry variation comes in where we need to understand if this fair value Gap right there that is coming out of the PDR so the third step the fair value Gap out is that a breakaway Gap so a back or is that an fvg a fair value Gap and if we want to understand a breakaway Gap then there&amp;#39;s two ways of knowing if it is a breakaway Gap and the first one I&amp;#39;m going to show you right here if we look at the discount arrays that are currently in price action right there then the first discount array that we actually encounter so the first support area that we see is this breaker right there that&amp;#39;s a breaker block and that breaker block right there is higher than the fair value Gap itself and when we have a discount array right there Above This fi Gap that discount array could withhold hold price from Trading into the fair value Gap meaning that there&amp;#39;s potentially a breakaway Gap and when there is potentially a breakaway Gap we do not want to enter on it we want to be certain that it isn&amp;#39;t a breakaway Gap because otherwise we might be waiting all this time and then we miss the entry because we simply did not get involved that&amp;#39;s going to hurt and that&amp;#39;s going to cost us money so the first way of knowing if it is a breakaway Gap right there is by knowing knowing if there is a discount array above the fair value Gap that you are about to enter on if there is then your entry is on that first discount array and not on the fair value Gap you do not necessarily need to cover the swing lows you can cover the bodies right there targeting a one to two and this is the exact example right there that I had in my tweet because that breaker might be responsible for the fap not being traded into and that might be is enough for us to enter off the breaker instead of the F Gap I would rather want to be a part of the move right there instead of missing it and waiting another decade before we have a new trade of course that&amp;#39;s me overexaggerating but that&amp;#39;s my thought process I just want to be a part of the move this is the first entry model that we have sitting right there and this is the first variation of an entry model as well all right we have arrived at example two right here US dollar JPY and the first that here is of course also PD array now the first step is the only thing where you need to think what do you want to do right there how do you want to align those time frames again general rule thumb is that if you have a monthly PD you want to focus on either a 4 hour or daily entry pattern if you have a weekly PD it&amp;#39;s going to be the 1 hour or the 4 Hour daily going to be the 15 minute or the 1 hour the 4 Hour is going to be the 5 minute or the 15 minute 1 hour is going to be the 1 minute or the 5 minute 15 minutes is going to be the one minute ideally and if you want to you can also use the 5 minute but the 1 minute is enough I&amp;#39;m giving you two options right there because if we for example use a monthly PD array and we can go either into the 4 Hour or daily we need to understand the 4 Hour is the minimum where the 4 Hour the lower one that I suggest is where you need more confirmation the higher you go above the 4 Hour the less confirmation you need and the example we had on bitcoin was weekly to daily the higher you go is perfectly fine so if you want to use a 1 hour PD and a 15 minute forag up higher only that&amp;#39;s perfectly fine because the smaller the difference between those time frames the stronger the confirmation is going to be where off of a weekly pdate a daily entry a daily for V up higher is extremely strong like we saw on bitcoin but don&amp;#39;t go lower than the lower time frame i s digested so for the monthly is the 4 Hour weekly 1 hour daily 50 minute 4 Hour 5 minute 1 Hour 1 minute because then it becomes extremely dangerous because that confirmation is going to be quite difficult so here in the 1 hour we see we are almost reaching these highs right there which we can of course reach by coming into this one hour V right there to continue higher off of that here we choose 1 minute or the 5 minute which one do you want to enter off of with the minimum being the one minute again for this example I&amp;#39;m going to go into the 5 minutes now on the five minute we are seeing again a fair value Gap in right there which is the second step fair value Gap in absolutely perfect beautiful fair value Gap into the PD Ray after that we see again a fair value Gap out right there this Fair Val Gap right here not following through like we&amp;#39;re seeing not creating a new Val Gap lower right there of course is a nice extra detail because that actually shows us that this bearish Val Gap was too weak to follow through right there and then after creating a bullish Val Gap indicates that the bullishness the bullish intention is taking over the bullish side is stronger so step one two and three are complete this is again where the variation the entry variation step four comes in this is where it&amp;#39;s completely mechanical again but you do need to be aware of what you are doing which rule are you applying the question for step number four is is the fair value Gap out in the third step a breakaway Gap or an FG the first question we ask ourselves if it is a breakaway Gap is there a discount array that is higher than this fair value Gap right there no actually not because the breaker sitting right there is below the fair value gap or halfway through the F Val Gap so the fair value Gap the opening of this F Val Gap is higher than the breaker we have right there perfect that might indicate that this is a fair value Gap then the second step we need to go over is understanding if the third candle right here that actually confirms the fair value Gap closes above the second candle&amp;#39;s High meaning this high right there and I&amp;#39;ll show you the example of a breakaway Gap right there in the next one on Australian dollar CHF but here this does not CL close above this second candle High meaning that this is not a breakaway Gap based on the two questions that we had is there a discount rate Above This fi Gap does the third candle close above the second candle high right there of course in a bearish situation it would be does the third candle close below the second candle low for example this one right here this is a breakaway Gap why because this right here the third candle closes below the second candle low so when we go over those two questions and we come to the conclusion that it is not a breakaway Gap then it means it is an f a fair value Gap in that case you want to enter off of the fair value Gap right there covering again the lows you can cover the bodies you can also cover the swing lows right there targeting one two two and the most important part of course understanding that we can enter right there off of the fair value Gap itself because since it is not a breakaway Gap we do expect a retracement back into it all right here we are on the third example Australian dollar CHF and showing you the last variation possible but before we dive into that third and the last variation we need to understand again the PD Ray the discount rate that 4our for Val Gap right there targeting eventually those highs then we have the choice we can go into the 15 minute or the 5 minute for this particular example I want to go into the five minute to show you the third variation all right on the five minute we see again the volatility the momentum the intention going into the discount array once we then are close to the discount array this Fair valap already shows that intention shows the manipulation it becomes even better because we see right there that we do not create a new 5 minutes forap lower off this previous 5 minutes forap app absolutely perfect that shows that again like on US dollar JY shows that there&amp;#39;s more bullish intention currently in the market so when we then create a bullish fair value Gap right there that is exactly what we would want to see but this bullish fair valap right there the third step the fair valap out is not enough because now we have aligned the time frames differently and to be honest this is my preferred entry variation right here I always like to get the double confirmation instead of the sharp turn we talked about earlier on bitcoin and on US dollar JPY and the reason for that so if you&amp;#39;ve made it to the last example then you&amp;#39;re getting golden nuggets because the reason for that is when we actually retrace into a discount array right there that is exactly what you would want to see so the first for higher right there you would want to see a retracement a retracement into any discount array that creates a new fair value Gap higher right here that is exactly what you would want to see the reason for that is because this now shows that there was a discount array holding meaning that all this time right here we have been bearish well perfectly bearish no but we have bearish right there which means that premium arrays were most likely holding the premium arrays were in charge of the market they were in control so to show that that control was actually shifting we can only see that by discount arrays now holding and creating that first survi Gap retracing into a discount array creating a new for up higher that shows that discount arrays are now holding which means that is the perfect confirmation that you actually can take an entry right there and this is exactly how you want to go over the entry pattern as well if you go for the lower time frame so for example the 1 hour with the 1 minute then you would want to see something similar to this where I mentioned two F gaps higher the first F Gap ideally retracement into disc and then a new F Gap higher off of that in the fourth step we ask ourselves again is this right there then the Breakaway Gap is that a breakaway Gap so we&amp;#39;re not talking about the first fair value Gap out right there we&amp;#39;re talking about this fair value Gap right there after is that a breakaway Gap well is there a discount array Above This fair value Gap sitting right there no because there&amp;#39;s nothing overlapping right there with the V meaning yes you do have those wigs but these Wicks are not valid because they are not overlapping with a fair value Gap so you have this order block right here and even this order block but that is below the fair value Gap all right so that&amp;#39;s the first indication that that might actually be an F but we need to go over the second question and the second question is when we created that F valap right there that we are looking to enter off of do we close above above the second candle High yes we do indicating that that might be a breakaway Gap so what do we do in this situation how do we enter this when that third candle closes above the second candle high this is where you use the last variation which is not entering on the discount rate that was there above the F Gap not entering of the FG itself but you enter off the creation of the fair value Gap itself meaning this fair value Gap gets created once this third candle closes right there that is exactly your entry this is a technique that I like to use a lot because here price might never retrace into those Breakaway gaps right there might never retrace into any discount array and might just take off so if we&amp;#39;ve been waiting for all that time to come into that discount array to then show the entry pattern I do not want to miss that move I want to be a part of that I want to make some money right there targeting the 1 to2 absolutely perfect this is the last variation for that fourth step again for that fourth step we have three different variations you either in the Breakaway Gap it&amp;#39;s a breakaway Gap because there&amp;#39;s a discount rate above the fair value Gap like we saw with Bitcoin and when that is the case you enter on the discount rate that is above the fair value Gap right there but let&amp;#39;s say that is isn&amp;#39;t the case and we do have a third candle closing above the second candle High then we enter off the creation of the F Val Gap like we&amp;#39;re seeing here on Australian dollar CHF but if it isn&amp;#39;t a breakaway Gap right there and there is no discount array above the fair value Gap and the third candle right there does not close above the second candle High then like US dollar JPY we enter off of the fair value Gap itself and the entry can actually be in the fair value Gap itself right there so from step one to the last step step four there is a stepbystep manner there&amp;#39;s a mechanical guide right there in order for me to get to my entry model with the guide right there making it simple of course it&amp;#39;s something you need to get used to don&amp;#39;t worry about that you can get used to this give it some time to get used to it as well and of course there&amp;#39;s also cases where for example here on US dollar JPY when we do not close above that second candle High we do not trade into the fvi Gap and of course this could also happen where we do have a discount rate above the FV Gap or what we establish to be a breakaway Gap right there and we do trade back into a breakaway Gap to then continue higher again that&amp;#39;s not the point that is going to happen this is not a 100% nothing in trading is 100% guaranteed but it&amp;#39;s all about probabilities and what we have done here is we have outlined the highest probability thing for you to actually capitalize on it no matter no matter what happens right there the highest probability thing for this to happen is that it doesn&amp;#39;t trade back into that for Val Gap it&amp;#39;s all about probabilities that&amp;#39;s very important to remember all right so if you do want my help to fully understand this and see if you actually fully understood it as well then feel free to send your case studies to my Twitter Aro iio it&amp;#39;s by the way the only Twitter that I have so please don&amp;#39;t get scammed by any weird accounts feel free to send me your case study right there just post it publicly give me a tag right there and I can go over it as well or on Instagram of course through stories for example and then I&amp;#39;ll see you at the next one all right perfect thank you

Transcript for:Trading with Fair Value Gaps

Transcript for:
Trading with Fair Value Gaps